By Hedge fund manager Michael Burry’s Scion Asset Management dumped all but one of its stock holdings in the second quarter, according to the firm’s filing with the U.S. Securities and Exchange Commission (SEC). Burry, famed for forecasting the 2008 financial crisis, has predicted a stock market crash, warning that winter is coming.
Can’t shake that silly pre-Enron, pre-9/11, pre-Worldcom feeling.
In another tweet, he opined: “Contrary to the internet and the Twittersphere, there have been bear market rallies that eclipsed 50% retracement and led to a lower low.” Noting that it “depends [on] how you define a bear rally and/or a cycle,” he listed April 1930, November 1938, June 1946, and November 1968.
Burry further tweeted last week: “Nasdaq a bull market because it is up 20% off its low? Who makes this stuff up? After 2000, the Nasdaq did that 7 times as it fell 78% to its 2002 low.”
The Big Short investor warned in a different tweet that winter is coming for the U.S. economy, citing a surge in consumer debt. “Net consumer credit balances are rising at record rates as consumers choose violence rather than cut back on spending in the face of inflation,” the famous investor wrote, adding:
Remember the savings glut problem? No more. Covid helicopter cash taught people to spend again, and it’s addictive. Winter coming.
What do you think about Michael Burry selling off all of his stock holdings except one? Let us know in the comments section below.
